Google to buy Plaxo?

Although Linkedin might be a better suitor for Plaxo, rumour has it (via Valleywag and Wired) that Google will cough around $200 million to get its grips on Plaxo.

Earlier this year, Plaxo revealed to Techcrunch that it had acquired 20 million users worldwide and had yet to turn a profit after seven years and $28 million venture capital investment; Plaxo has also rumoured to be on sale since January for roughly $100 million.

The Contact-Sharing-turned-Social-Network-Service has had a hard time lately as its Pulse service came in the limelight for the wrong reasons and Linkedin surpassed in as the top business social network.

Plaxo is part of Google's OpenSocial platform but Google could face serious competition from Microsoft and Facebook (or even Myspace).

Microsoft could purchase Plaxo to enrich its offers to Small and Medium businesses by offering an all in one SME CRM solution overnight together with its Outlook 2007 Business Customer Management.

Facebook would get it to increase its appeal for business users to grab higher CPM advertising deals.

As for Google, Plaxo would be a nice complement to its Google Apps as it looks to substantially boost its presence in the SME market where Microsoft is dominant.